AUD/USD confined around 200m MA

FXStreet (Guatemala) - AUD/USD is currently trading at 0.7783 with a high of 0.7796 and a low of 0.7746.

AUD/USD is little changed since the HSBC China Manufacturing Purchasing Managers Index (PMI) for January release. This arrived at 49.7 as the final outcome vs 49.8. Meanwhile, there continues to be a negative sentiment around the Aussie currently, especially with risk off being displayed at the start of this week, evident by a stronger yen on the open. The week ahead brings a number of key events including the RBA's policy meeting. There has been a lot of hype built up around this event, with some speculating that the bank will follow the path of the BoC and their recent surprise rate cut. The RBNZ mirrored similar caution around a global disinflationary environment as well.

Technically, the pair is trading around the 200 month MA. Below here, the next major support comes in at the 4 month down channel at 0.7660. To the upside, Karen Jones, chief analyst at Commerzbank puts 0.8034 (7th Jan low) as first hurdle, then 0.8060 (20 day ma). "Key resistance is the 0.8166 downtrend. A close above here is needed to alleviate the bearish pressure".

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